Disposal (0008B)
February 10 2011 - 2:00AM
UK Regulatory
TIDMHGT
RNS Number : 0008B
HG Capital Trust PLC
10 February 2011
HgCapital has agreed to sell its investment in SiTel (investment
held as Elite Holding SA).HgCapital Trust plc, the listed
investment trust which invests in all HgCapital's deals alongside
its institutional clients, will immediately realise estimated cash
proceeds of GBP9.6 million. This compares to a carrying value of
GBP3.6 million in the Net Asset Value (NAV) of the Trust at 30
November 2010, an uplift of GBP6.0 million (19.6 pence per share
basic; 16.3 pence per share fully diluted*). Based on the 30
November 2010 NAV and following completion of this and our other
announced transactions that completed after the last published NAV
and before taking into consideration the revaluation of the
investment portfolio at 31 December 2010, the NAV of HgCapital
Trust plc is estimated to be GBP327.2 million (1,052.0 pence per
share basic; 1,035.0 pence per share fully diluted*) and liquid
resources are estimated to be GBP91.0 million (27.8% of the
estimated NAV). *The calculation of fully diluted earnings per
share assumes that all subscription shares in issue are exercised
at their minimum price of 950 pence. Set out below is the text of a
press release issued today by HgCapital announcing the divestment.
HgCapital announces the sale of SiTel London, 10 February 2011:
HgCapital has today announced the sale of SiTel Semiconductor
("SiTel"), the Netherlands-based producer of products targeted
primarily at the home wireless voice and data applications market,
to Dialog Semiconductor Plc for an enterprise value of $86.5
million, which represents a realisation of nearly 2.4x original
cost. This is HgCapital's 35th realisation over the last five and a
half years, representing an overall investment multiple of 2.6x
original cost and a gross IRR of over 30%.
This transaction follows HgCapital's majority realisation of
Nordic SME software provider Visma in September 2010, which
represented a total return of 3.7x original cost to investors. A
consistent, thematic approach to targeted sub-sector TMT investing
has delivered seven realisations averaging more than 3x cost and
46% IRR since 2006, with no single TMT exit delivering an
investment return of less than 2.1x cost. Since 2001, buyout
investments completed by HgCapital's dedicated TMT sector team have
returned more than GBP800 million in realised proceeds to clients
and have resulted in the aggregate creation of more than 4 000 new
jobs during HgCapital's period of ownership.
HgCapital acquired the cordless business unit of the National
Semiconductor Corporation, known as SiTel, in June 2005. HgCapital
has worked closely with SiTel's management to establish the
business as a strong, independent entity supporting expansion into
areas such as "Voice over Internet Protocol" (VoIP) chips and
gaming peripherals. The business was subsequently able to perform
strongly throughout the downturn, with EBITDA increasing by over
61% between 2008 and 2010.
Commenting on the realisation, Nick Turner, a Partner with
HgCapital, stated: "It has been a pleasure working together with
Asmund Tielens and his management team. SiTel is a high quality
business with a leadership position in its core market; and, not
for the first time, we have seen the rewards for backing such a
business with increased research and development spending to
accelerate its growth. We are pleased to see it become part of a
group which will allow the team to continue to build on this
success."
Nic Humphries, CEO of HgCapital, said: "The sale of SiTel
supports HgCapital's established track record for successful
sub-sector, thematic investing in the TMT space. Our performance in
this sector indicates that we are very well positioned to continue
building a compelling competitive advantage within the European TMT
market."
HgCapital and SiTel were advised in this transaction by
Mooreland Partners. - Ends -
For further details please contact:
HgCapital: Nick Turner +44 (0)20 7089 7888
Dan Groen +44 (0)20 7089 7888
Maitland: Neil Bennett +44 (0)20 7379 5151
+44 (0)7900 000777
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange. The Trust is a client of
HgCapital, giving investors exposure to a portfolio of high-growth
private companies, through a liquid vehicle. New investments and
existing portfolio companies are managed by HgCapital, an
experienced and well resourced private equity firm with a long-term
track record of delivering superior risk-adjusted returns for its
investors. The Trust has won the Investment Week Private Equity
Investment Trust of the Year in 2005, 2006, 2007, 2008, 2009 and
2010. For further details, please see www.hgcapitaltrust.com
About HgCapital
HgCapital is a private equity investor focused on the European
middle market. Its business model combines sector-specific thematic
investing with dedicated portfolio management support. HgCapital
seeks to invest in growth companies in expanding sectors which
create jobs across Western Europe.
HgCapital is also an investor in renewable energy, establishing
itself as a market leader by building a dedicated energy investment
team in 2004. It continues to invest a dedicated fund in a range of
renewable power technologies across Western Europe.
HgCapital manages over GBP3 billion for some of the world's
leading institutional and private investors. For further details,
please see www.hgcapital.com.
Neither the contents of HgCapital's or SiTel's website nor the
contents of any website accessible from hyperlinks on the websites
(or any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISGGUMAPUPGUQU
Hg Capital (LSE:HGT)
Historical Stock Chart
From May 2024 to Jun 2024
Hg Capital (LSE:HGT)
Historical Stock Chart
From Jun 2023 to Jun 2024